News

Former health foundation employee is arrested

Marilyn Machalowski, a former employee of the Lucile Packard Foundation for Children's Health, has been arrested by the Palo Alto Police Department and charged with embezzling more than $350,000 from the foundation, the Santa Clara County District Attorney's office announced.

Machalowski, 68, worked for the foundation from 1999 to 2007, when the suspected embezzlement took place. She faces a maximum of five years in state prison if convicted.

Police credit forensic auditors from Deloitte FAS for uncovering the suspected embezzlement after a thorough audit of the foundation's financial records.

Machalowski worked as an accountant and payroll/benefits manager for the foundation. She is suspected of wiring money from the foundation into a personal account as well as putting money toward her 401K retirement account. To conceal the embezzlement, Machalowski allegedly "recorded much lower dollar amounts in the check register" than what the foundation received, according to the district attorney's office.

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Comments

Like this comment

Posted by carl
a resident of Charleston Meadows
on Jul 4, 2008 at 9:39 pm

One of our better characteristics is trusting our fellows. But we know some are flawed.

All companies who have money passing through their hands and have a bookkeeper must have an annual audit by an outside firm. It's cheaper than paying insurance or losing money through theft. And it's tax deductible.

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